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Originally published by Kenyanstop
January 5, 2026
1d ago
How Routine Loan Recovery Practices Can Cost Lending Firms Millions

Lending institutions are known to resort to some extreme tactics to recover their loans, some of which are unlawful...
✨ Key Highlights
Lending firms in Kenya risk significant financial penalties for unlawfully disclosing customer financial information, as a recent ruling by the Office of the Data Protection Commissioner (ODPC) demonstrates.
- A lender was ordered to pay Ksh 200,000 in compensation for sharing a borrower's sensitive financial data without consent.
- The complaint, ODPC Complaint No. 1966 of 2024, involved the disclosure of payslips, bank statements, and identification documents to unauthorized third parties including another bank and the borrower's colleagues.
- The ODPC found the lender failed to establish any lawful basis under Section 30 of the Data Protection Act 2019 for processing and disclosing the data, leading to the penalty.
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